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Biofuels 'a perfect storm' for world's poor

12 March 2008

The current boom in biofuels production is inflating food prices to such an extent that the world's economy has entered 'a perfect storm' for the world's poor.

"The shift to biofuels production has diverted lands out of the food chain," Josette Sheeran, head of the World Food Programme, told MEPs in Brussels.

She said food prices such as palm oil in Africa were now set at fuel prices and warned they were curtailing the WFP's capacity to respond to hunger by increasing operating costs.

Food prices were rising due to the use of biofuel crop production, record oil and energy prices, climate change effects, and demand from countries such as India and China.

Wheat prices alone have risen by 70 per cent in the last year alone, she said.

Mrs Sheeran said world food reserves were at their lowest level for 30 years.

The EU wants to increase the EU's renewable energy use by 20 per cent by 2020, compared to 1990 levels, with biofuels contributing ten per cent of all transport fuels used by then.

The WFP is asking for an extra £187 million for global food projects and £93 million to transport in aid to bridge the $500 million food gap.

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